Suppose the Marginal Revenue Product of Individuals Who Work in the Union

Multiple Choice

Suppose the marginal revenue product of individuals who work in the union sector is greater than that of individuals who work in the nonunion sector. Normally, we would expect labor to move from the nonunionized sector to the unionized sector-from where it is worth less to where it is worth more. But if this cannot happen, owing to the supply-restraining efforts of the union, then

A) wages in the nonunion sector will rise.
B) wages in the union sector will fall.
C) there will be a misallocation of labor---not all labor will be employed where it is most valuable.
D) workers in the union sector will move to the nonunion sector.